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Babcock & Wilcox Co (NYSE:BWC)
Net Margin
6.19% (As of Mar. 2015)

Net margin is calculated as net income divided by its revenue. Babcock & Wilcox Co's net income for the three months ended in Mar. 2015 was $45 Mil. Babcock & Wilcox Co's revenue for the three months ended in Mar. 2015 was $731 Mil. Therefore, Babcock & Wilcox Co's net margin for the quarter that ended in Mar. 2015 was 6.19%.

BWC' s 10-Year Net Margin Range
Min: 1.01   Max: 10.59
Current: 0.99

1.01
10.59
BWC's Net Marginis ranked higher than
52% of the 2483 Companies
in the Global Diversified Industrials industry.

( Industry Median: 4.40 vs. BWC: 0.99 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Babcock & Wilcox Co's Net Margin for the fiscal year that ended in Dec. 2014 is calculated as

Net Margin=Net Income (A: Dec. 2014 )/Revenue (A: Dec. 2014 )
=29.388/2923.019
=1.01 %

Babcock & Wilcox Co's Net Margin for the quarter that ended in Mar. 2015 is calculated as

Net Margin=Net Income (Q: Mar. 2015 )/Revenue (Q: Mar. 2015 )
=45.257/730.565
=6.19 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Babcock & Wilcox Co Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14
netmargin 0.000.000.009.535.185.202.656.9210.591.01

Babcock & Wilcox Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
netmargin 4.525.868.227.8020.636.803.858.30-12.346.19
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